Moving PCB assembly from China to Thailand
What changes, what does not, and how to plan the move. Written for US and European hardware teams by the engineers who run our Rayong plant. Updated 25 October 2026.
Why teams are moving
US buyers are mostly responding to tariffs and to their own customers. Printed circuit board assemblies on the older Section 301 China lists carry a 25% duty that Thai-origin boards do not. Large customers increasingly ask suppliers to show more than one country of production. And in 2026 alone, US tariffs moved from IEEPA to Section 122 to Section 301, so many teams want production that works under more than one policy.
European buyers have no tariff reason to move, because Thailand has no trade agreement with the EU yet. They move for resilience, after shortages such as the 2025 Nexperia chip disruption, and to document supply chains ahead of the EU Forced Labour Regulation.
How origin is decided for a PCBA
US Customs and Border Protection asks whether a product was substantially transformed in the country it ships from. For PCBAs, recent rulings put the line at SMT assembly:
- N350085 (July 2025): a board populated in China and finished in Thailand stayed of Chinese origin.
- N351143 (August 2025): the same kind of board populated by SMT in Thailand was of Thai origin.
- N356709 (December 2025): a PCBA made in Thailand kept Thai origin even after it was put into a housing in China.
In Rayong we run SMT, reflow, AOI and X-ray, wave solder, programming, ICT, FCT and final assembly. For each program we can provide the process flow, a BOM origin breakdown and production records for your customs broker. Origin is decided by customs, not by us, and this page is not legal advice.
The US tariff picture as of 25 October 2026
| Origin | Duties on a typical PCBA |
|---|---|
| China | Normal duty + 12.5% Section 301 + 25% (lists 1–3) or 7.5% (list 4A) |
| Thailand | Normal duty + 12.5% Section 301 |
Sources: Federal Register notice on Section 301 tariffs effective 24 July 2026; White & Case on the end of IEEPA tariffs in February 2026. A Section 301 investigation into excess capacity that includes Thailand was opened in March 2026 and had not concluded at the time of writing. Rates change; confirm with your broker before you decide.
What stays the same
The process, inspection gates and MES our engineers have run since 2012 are the same in Rayong. So is the sourcing network: 860+ partners, including 450+ manufacturers and 300+ authorized distributors. Your program keeps one engineer from DFM to volume, and you can follow order status online.
Risks to plan for, and what we do about them
Moves out of China do not always pay off. About a quarter of cross-border expansions in electronics have reduced profit, usually because of BOM premiums, slow ramp-ups or stricter origin treatment than expected.
| Risk | How to plan for it | What we do |
|---|---|---|
| Parts still come from China | Ask for a BOM origin breakdown before you commit. It shows which parts are bought in Thailand, which elsewhere in Asia, and which in China. | We run a Thai supplier network alongside our wider sourcing network. On our 2025 welder transfer, chips came from the US and components from Malaysia and Singapore. |
| Unit cost goes up at first | Industry reports put early local-sourcing premiums at 15–25% for new plants. Compare landed cost, duty included, not unit price. | Quotes itemize NRE, stencils and fixtures, so you can see one-time cost separately from unit cost. |
| Ramp-up and requalification slip | Budget for first-article inspection, pilot lots and, for automotive, PPAP before volume. | Same process, MES and inspection gates our engineers have run since 2012. Our first transfer reached volume inside its six-month window. |
| Origin is challenged at the border | Keep records of where each process step happens. Ask your broker about a binding ruling for high-value programs. | SMT through final test happen in Rayong, and we provide process flow, BOM origin data and production records on request. |
| Policy changes again | In 2026 alone, US tariffs moved from IEEPA to Section 122 to Section 301. Avoid a move that only works at one tariff rate. | A second source in Thailand protects lead time and supply even when the duty gap narrows. |
Profit and cost-premium figures: BCG, The Electronics Supply Chain Has Crossed an Inflection Point.
How a transfer runs
BOM origin review
Which parts we buy locally, which elsewhere in Asia, which in China, with lead times.
DFM and quote
DFM report within 24 hours of complete files; quote in 1–3 days.
Sourcing
Long-lead parts ordered early; alternates only with your approval.
First article
FAI, X-ray and FCT reports; your audit if you want one.
Pilot and PPAP
Pilot lots in volume conditions; PPAP for automotive.
Volume
Serial-number tracking, shipped by sea or air.
Common questions
Does moving PCBA to Thailand remove US tariffs?
No. As of 25 October 2026, goods of Thai origin pay the normal duty plus a 12.5% Section 301 tariff. Goods of Chinese origin pay that 12.5% as well, plus 25% or 7.5% if they fall on the older Section 301 China lists. The saving depends on your product classification.
Is a board assembled in Thailand automatically of Thai origin?
No. US customs looks for substantial transformation. Its rulings on printed circuit board assemblies point to where SMT assembly happens: boards populated in China and only finished in Thailand stayed Chinese, while boards populated in Thailand were Thai.
Why would a European company move PCBA to Thailand?
Not for tariffs: Thailand has no free trade agreement with the EU yet. European buyers usually want a second source outside China for resilience, and supply chains they can document for the EU Forced Labour Regulation, which applies from 14 December 2027.
How long does a transfer take?
Plan on months, not weeks. Our 2025 transfer of a welding-machine PCBA for a US brand reached volume production inside a six-month window, including line setup, sourcing and customer audits.
Planning a move? Start with your BOM.
Send it and we will tell you which parts we can buy locally, which come from China, and what that means for lead time and cost.